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SCHEME INFORMATION DOCUMENT

LIC NOMURA MF FIXED MATURITY PLAN – SERIES 91

(A close ended income scheme) Offer of Units of Rs.10/- per unit during the New Fund Offer

This product is suitable for investors who are seeking*:

Regular income for medium to long term. Investment in Debt/ Money Market Instruments/Govt. Securities Low risk. (BLUE)

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Note: Risk may be represented as: (BLUE) investors understand that

their principal will be at low risk

(YELLOW) investors understand that

their principal will be at medium risk

(BROWN) investors understand that

their principal will be at high risk

The scheme will be listed on National Stock Exchange of India Ltd. (NSE)

Name of the Mutual Fund LIC NOMURA Mutual Fund

Name of the Asset Management Company

LIC NOMURA Mutual Fund Asset Management Company Ltd

Name of the Trustee Company LIC NOMURA Mutual Fund Trustee Company Pvt. Ltd

Addresses, Website of the entities LIC NOMURA Mutual Fund Asset Management Company Ltd.

Industrial Assurance Building

4 th Floor Opp. Churchgate Station

Mumbai – 400 020. Email: [email protected]; Website: www.licnomuramf.com

The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Fund) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and file with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Info rmation Document.

The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centers / Website / Distributors or Brokers.

The investors are advised to refer to the Statement of Additional Information (SAI) for details of LIC NOMURA Mutual Fund, Tax and Legal issues and general information on www.licnomuramf.com

SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Center or log on to our website. The Scheme Information Document should be read in conjunction with the SAI and not in isolation

New Fund Offer Opens on: 01/12/2014 New Fund Offer Closes on: 03/12/2014

mailto:[email protected]://www.licnomuramf.com/http://www.licnomuramf.com/

The Scheme Information Document is dated November 3, 2014.

Disclaimer: “As required, a copy of this Scheme Information Document has been submitted to National Stock Exchange of India Limited (hereinafter referred to as NSE). NSE has given vide its letter NSE/LIST/241607-R dated June 12, 2014 permission to the Mutual Fund to use the Exchange’s name in this Scheme Information Document as one of the stock exchanges on which the Mutual Fund’s units will be listed subject to, the Mutual Fund fulfilling the various criteria for listing. The Exchange has scrutinized this Scheme Information Document for its limited internal purpose of deciding on the matter of granting the aforesaid permission to the Mutual Fund. It is to be distinctly understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this Scheme Information Document; nor does it warrant that the Mutual Fund’s units will be listed or will continue to be listed on the Exchange; nor does it take any responsibility for the financial or other soundness of the Mutual Fund, its promoters, its management or any scheme or project of the Mutual Fund. Every person who desires to apply for or otherwise acquire any units of the Mutual Fund may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription /acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever.”

CONTENTS HIGHLIGHTS/SUMMARY OF THE SCHEME ............................................................................. 4

I. INTRODUCTION ........................................................................................................................ 6

A. RISK FACTOR ....................................................................................................................... 6

B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME...................................... 14

C. SPECIAL CONSIDERATIONS, IF ANY ............................................................................... 14

D. DEFINITIONS...................................................................................................................... 14

E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ....................................... 16

II. INFORMATION ABOUT THE SCHEME ................................................................................ 17

A. TYPE OF THE SCHEME ...................................................................................................... 17

B. INVESTMENT OBJECTIVE OF THE SCHEME .................................................................. 17

C. ASSET ALLOCATION PATTERN ....................................................................................... 17

D. WHERE WILL THE SCHEME INVEST .............................................................................. 19

E. INVESTMENT STRATEGIES .............................................................................................. 20

F. FUNDAMENTAL ATTRIBUTES ......................................................................................... 22

G. SCHEME BENCHMARK ...................................................................................................... 22

H. FUND MANAGER ................................................................................................................ 22

I. INVESTMENT RESTRICTIONS .......................................................................................... 23

J. PERFORMANCE OF SCHEME ............................................................................................. 24

III. UNITS AND OFFER ............................................................................................................... 24

A. NEW FUND OFFER (NFO) ................................................................................................. 24

B. ONGOING OFFER DETAILS ............................................................................................... 33

C. PERIODIC DISCLOSURES .................................................................................................. 37

D. COMPUTATION OF NAV ................................................................................................... 38

IV. FEES AND EXPENSES ........................................................................................................... 39

A. NEW FUND OFFER EXPENSES ......................................................................................... 39

B. ANNUAL SCHEME RECURRING EXPENSES .................................................................... 39

C. TRANSACTION CHARGES ................................................................................................. 40

D. LOAD STRUCTURE ............................................................................................................ 41

E. WAIVER OF ENTRY LOAD ................................................................................................ 42

V. RIGHTS OF UNITHOLDERS .................................................................................................. 42

VI. LIST OF OFFICIAL POINTS OF ACCEPTANCE OF TRANSACTIONS ............................... 43

HIGHLIGHTS/SUMMARY OF THE SCHEME Investment Objective: The investment objective of the Scheme is to minimize interest rate risk by investing in a portfolio of fixed income securities which mature on or before the maturity of the scheme. However there is no assurance that the investment objective of the scheme will be met. Plans / Options Offered: The following are the plans/options offered under the scheme: 1. Regular Plan - Dividend Payout 2. Regular Plan – Growth 3. Direct Plan – Dividend Payout 4. Direct Plan – Growth * (* Default Plan/Option) Direct Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund (i.e. investments not routed through an AMFI Registration Number (ARN) Holder). Dividend Reinvestment Option under the scheme is not available. The portfolio will be same for all the plans and options. Liquidity: The scheme is a closed ended income scheme. The units of the scheme will be listed on National Stock Exchange of India Ltd. (NSE). The investors cannot redeem the units of the scheme directly with the Fund till the maturity of the scheme. Investors can purchase or repurchase units on a continuous basis on NSE where the units will be listed until the date of issue of notice by the AMC for fixing the record date for determining the unitholders whose name(s) appear on the list of the beneficial owners as per the Depositories (NSDL/CDSL) records for the purpose of redemption of Units on Maturity Date. The trading of units of the stock exchange where units will be will automatically get suspended from the date of issue of the said notice and also the Depositories shall permit no off-market transactions. The price of the Units in the market will depend on demand and supply at that point of time. There is no minimum investment, although units are purchased in round lots of 1. The notice for fixing the Record Date will be issued by the AMC five calendar days before the maturity date and the Record Date for redemption of Units on Maturity date will be at least one calendar day prior to the Maturity date. The Fund reserves the right to change the period for publication of Notice and Fixing of Record date for redemption of units on Maturity date. Dematerialization of Units The Unit holders would have an option to hold the Units in dematerialized form. Accordingly, the Units of the Scheme will be available in dematerialized (electronic) form. The Applicant intending to hold Units in dematerialized form will be required to have a beneficiary account with a Depository Participant (DP) of the NSDL/CDSL and will be required to mention in the application form DP's Name, DP ID No. and Beneficiary Account No. with the DP at the time of purchasing Units during the NFO of the scheme. The Units of the Scheme will be traded and settled on the exchange compulsorily in dematerialized (electronic) form. As per SEBI (MF) Regulations, the Mutual Fund shall dispatch redemption proceeds within 10 Business Days from the date of Maturity. A penal interest of 15% p.a. or such other rate as may be prescribed by SEBI from time to time, will be paid in case the payment of redemption proceeds is not made within 10 Business Days from the date of Maturity. However under normal circumstances, the Mutual Fund would endeavor to pay the redemption proceeds within 3-4 Business Days from the date of Maturity. Benchmark: CRISIL Short Term Bond Fund Index.

Transparency / NAV Disclosure: The AMC will calculate and disclose the first NAV of the scheme not later than 5 Business Days from the closure of the allotment of units of the scheme. Thereafter NAV shall be calculated on all Business Days and announced at the close of each Business Day and declared in accordance with the SEBI guidelines from time to time and will be displayed / available at the Corporate office, Registrars office and other Authorized Centers such as the Area Offices / Business Centers. The NAV will also be published in two daily newspapers having circulation all over India in accordance with SEBI guidelines and will also be updated on AMFI website and LIC NOMURA MF website on all Business Days. AMC shall disclose details of the portfolio of the Scheme on a monthly basis on or before 10th day of the succeeding month on its website i.e. www.licnomuramf.com. As per SEBI (MF) Regulations, a complete statement of the Scheme portfolio would be published by the Mutual Fund as an

advertisement in one English daily Newspaper circulating in the whole of India and in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated within one month form the close of each half year (i.e. March 31 & September 30) or mailed to the Unit holders. Loads: Entry Load: Not applicable Pursuant to SEBI Circular No. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Plan(s) under the Scheme to the investor. The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder (AMFI registered Distributor) directly by the investor, based on the investor's assessment of various factors including service rendered by the ARN Holder. Exit Load: Not Applicable. Since the scheme will be listed on stock exchange, there will not be any exit load. Direct Plan: As per SEBI circular no. CIR/IMD/DF/21/2012 dated 13/09/2012 there will be separate NAV for direct investment i.e. not routed through any distributor. Minimum Application Amount: Rs. 10,000/- and thereafter in multiples of Rs. 1/- during the NFO of the scheme. Series: We are launching various series. The present scheme will be 91 in the series and hence the scheme will be known as LIC NOMURA MF Fixed Maturity Plan – Series 91 (LIC NOMURA MF FMP Series 91). LIC NOMURA MF FMP Series 91 will be matured after 1100 days from the date of allotment (including date of allotment) which is called 1100 days plan. If the maturity day

happens to be a non-business day, the next business day will be the maturity date.

The New Fund Offer of the plan will be launched within 6 months from date of final observation letter given by the SEBI for the said Scheme Information Document. Information regarding launching of the NFO will be displayed by way of a notice at our Area Offices / Business Centers / R&T Agent / ISCs and will be open for a period of not exceeding 15 days. The Trustee / AMC may close the New Fund Offer before the actual closing date by giving at least one-day notice in daily newspaper. The Fixed Maturity Plans are close-ended income scheme with no assured returns and will enable investors to nearly eliminate interest rate risk by remaining invested in the scheme till the Maturity Date. The scheme will get redeemed as on the date of maturity. Application Supported by Blocked Amount (ASBA): Investors may apply through the ASBA process during the NFO period of the Scheme by filling in the ASBA form and submitting the same to their respective banks, which in turn will block the amount in the account as per the authority contained in ASBA form, and undertake other tasks as per the procedure specified therein. For complete details on ASBA process refer Statement of Additional Information (SAI) made available on our website www.licnomuramf.com. Transaction Charges: In accordance with SEBI Circular No. Cir/ IMD/ DF/13/ 2011 dated August 22, 2011, the AMC shall deduct the Transaction Charges on purchase / subscription of Rs.10,000 and above received from first time mutual fund investors and investor other than first time mutual fund investors through the distributor/agent (who have opted to receive the transaction charges based on type of the product) as under: First Time Mutual Fund Investor: Transaction charge of Rs.150/- for subscription of Rs.10, 000 and above will be deducted from the subscription amount and paid to the distributor/ agent of the first time investor. The balance of the subscription amount shall be invested. Investor other than First Time Mutual Fund Investor: Transaction charge of Rs.100/- per subscription of Rs.10, 000 and above will be deducted from the subscription amount and paid to the distributor/ agent of the investor. The balance of the subscription amount shall be invested. Transaction charges shall not be deducted for: _ Purchases /subscriptions for an amount less than Rs.10, 000/-; - Transaction other than purchases/ subscriptions relating to new inflows such as Switches, etc. No transaction charges will be deducted for any purchase/ subscription made directly with the Fund (i.e. not through any distributor/ agent).

“The mutual fund or AMC and its empanelled brokers have not given and shall not give any indicative portfolio and indicative yield in any communication, in any manner whatsoever. Investors are advised not to rely on any communication regarding indicative yield/portfolio with regard to the scheme.”

http://www.licnomuramf.com/

I. INTRODUCTION

A. RISK FACTOR

STANDARD RISK FACTORS

• Mutual funds and securities investments are subject to market risks and there is no assurance and no guarantee that the objectives of the mutual fund shall be achieved.

• The NAV of the units issued under the scheme may go up or down depending on the factors and forces affecting capital markets.

• Past performance of the Sponsor/AMC/Mutual fund does not indicate the future performance of the schemes of the Mutual Fund.

• LIC NOMURA MF FIXED MATURITY PLAN – SERIES 91 is the name of the scheme and does not in any manner indicate either the quality of the scheme or its future prospects and returns.

• The sponsor is not liable for any loss resulting from the operation of the scheme beyond the initial contribution made by it for an amount of Rs.2 Crore towards setting up of the Mutual Fund.

• Investors in the scheme are not being offered any assured /guaranteed returns. Further, the Fund/AMC is not guaranteeing or assuring any returns. The Fund/AMC is also not assuring or guaranteeing that it will be able to make regular dividend distributions to its Unitholders, though, it has every intention to manage the portfolio so as to make such payments to the Unitholders. Dividend payments will be dependent on the returns achieved by the AMC through active management of the portfolio. The dividend distributions may, therefore, vary from month to month, quarter to quarter or year to year, based on investment results of the portfolio. Further, it should be noted that the actual distribution of dividends and frequency thereof are indicative and will depend, inter-alia, on availability of distributable surplus. Dividend payouts will be entirely at the discretion of Trustees.

RISK FACTORS SPECIFIC TO SCHEME Trustees have ensured that before the launch of the Scheme, in – principle approval for listing has been obtained. The Scheme will be listed on National Stock Exchange of India Ltd. (NSE). Further, the AMC may at its discretion list the units on any Stock Exchange.

• Risk factors related to debt security: All debt securities are exposed to interest rate risks, credit risks and reinvestment risk. Different types of securities in which the scheme would invest as given in the scheme information document carry different levels and types of risk. Accordingly, the scheme’s risk may increase or decrease depending upon its investment pattern e.g. corporate bonds carries a higher amount of risk than government securities. Further even among corporate bonds, bond, which AAA rated, are comparatively less risky than bonds which are AA rated.

• Price-Risk or Interest-Rate Risk: As with all debt securities, changes in interest rates may affect the scheme’s NAV as the prices of securities generally increase as interest rates decline and generally decrease as interest rates rise. Prices of long-term securities generally fluctuate more in response to interest rate changes than do short-term securities. Indian Debt markets can be volatile leading to the possibility of price movements up or down in fixed income securities and thereby to possible movements in the NAV.

• Credit Risk: Credit risk or default risk refers to the risk that an issuer of a fixed income security may default (i.e. will be unable to make timely principal and interest payments on the security). Because of this risk corporate debentures are sold at a higher yield above those offered on Government Securities, which are sovereign obligations and free of credit risk. Normally, the value of a fixed income security will fluctuate depending upon the changes in the perceived level of credit risk as well as any actual event of the default. The greater the credit risk, the greater the yield required for someone to be compensated for the increased risk.

• Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the scheme are reinvested. The additional income from reinvestment is the ‘interest on interest’ component. The risk is that the rate at which interim cash flows can be reinvested may be lower than that originally assumed.

Liquidity Risk: This refers to the ease with which a security can be sold at or near to its valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. Liquidity risk is today characteristic of the Indian fixed income market.

• Risks associated with Listing of Units on Exchange : 1) although the units of the scheme will be listed on the exchange, there can be no assurance that the active secondary market will develop or be maintained. (2) Trading in Units of the scheme on the Exchange may be halted because of market conditions or for reasons that in view of Exchange Authorities or SEBI, trading in Units of the scheme is not advisable. In addition, trading in Units of the Scheme is subject to trading halts caused by extraordinary market volatility and pursuant to Exchange and SEBI 'circuit filter' rules. There can be no assurance that the requirements of Exchange necessary to maintain the listing of Units of the respective Plan(s) will continue to be met or will remain unchanged. (3) Any changes in trading regulations by the Stock Exchange(s) or SEBI may inter-alia result in wider premium/ discount to NAV. (4) The Units of the scheme may trade above or below their NAV. The NAV of the scheme will fluctuate with changes in the market value of scheme holdings. The trading prices of Units of the scheme will fluctuate in accordance with changes in their NAV as well as market supply and demand for the Units of the scheme. (5) The Units will be issued in demat form through depositories. The records of the depository are final with respect to the number of Units available to the credit of Unit holder. Settlement of trades, repurchase of Units by the Mutual Fund on the maturity date will depend upon the confirmations to be received from depository(ies) on which the Mutual Fund has no control. (6) The market price of the Units of the scheme like any other listed security is largely dependent on two factors viz., (a) the intrinsic value of the Unit (or NAV) and (b) demand and supply of Units in the market. Sizeable demand or supply of the Units in the Exchange may lead to market price of the Units to quote at premium or discount to NAV (7) As the Units allotted under the scheme will be listed on the Exchange, the Mutual Fund shall not provide for redemption / repurchase of Units prior to maturity date of the scheme. Risk Management Strategy: i)Price-Risk or Interest-Rate Risk:

The fund will invest in a basket of debt and money market securities maturing on or before the maturity of the fund with a view to hold them till the maturity of the fund. While the interim NAV will fluctuate in response to changes in interest rates, the final NAV will be more stable. To that extent the interest rate risk will be mitigated at the maturity of the scheme. ii)Credit Risk:

A traditional SWOT analysis will be used for identifying company specific risks. Management’s past track record will also be studied. In order to assess financial risk a detailed assessment of the issuer’s financial statements will be undertaken to review its ability to undergo stress on cash flows and asset quality. A detailed evaluation of accounting policies, off-balance sheet exposures, notes, auditors’ comments and disclosure standards will also be made to assess the overall financial risk of the potential borrower. In case of securitized debt instruments, the fund will ensure that these instruments are sufficiently backed by assets. iii)Reinvestment Risk:

Reinvestment risks will be limited to the extent of coupons received on debt instruments, which will be very small portion of the portfolio value.

iv) Liquidity Risk:

The scheme may invest in government securities, corporate bonds and money market instruments. While the liquidity risk for government securities, money market instruments and short maturity corporate bonds may be low, it may be high in case of medium to long maturity corporate bonds. Liquidity risk is today characteristic of the Indian fixed income market. The fund will however, endeavor to minimize liquidity risk by investing in securities having a liquid market. Securitization: Background, Risk Analysis, Mitigation, Investment Strategy and Other Related Information A securitization transaction involves sale of receivables by the originator (a bank, non-banking finance company, housing finance company, or a manufacturing/service company) to a Special Purpose Vehicle (SPV), typically set up in the form of a trust. Investors are issued rated Pass Through Certificates (PTCs), the proceeds of which are paid as consideration to the originator. In this manner, the originator, by selling his loan receivables to an SPV, receives consideration from investors much before the maturity of the underlying loans. Investors are paid from the collections of the underlying loans from borrowers. Typically, the transaction is provided with a limited amount of credit enhancement (as stipulated by the rating agency for a target rating), which provides protection to investors against defaults by the underlying borrowers. Generally available asset classes for securitization in India are: Commercial vehicles Auto and two wheeler pools Mortgage pools (residential housing loans)

Personal loan, credit card and other retail loans

Corporate loans/receivables In pursuance to SEBI communication dt: August 25, 2010, given below are the requisite details relating to investments in Securitized debt: 1. Risk profile of securitized debt vis-à-vis risk appetite of the scheme The Scheme aims to invest in a portfolio of fixed income securities/ debt instruments maturing on or before the maturity of the Plan under the Scheme. In this scheme the fund manager ensures that the scheme maturity matches the maturity of the underlying securities and as securitized debt instruments are relatively illiquid the fund manager buys these with the view to hold them till maturity. Investment in these instruments will help the fund in aiming at reasonable returns. These returns come with a certain degree of risks, which are covered separately in the Scheme Information Document. Accordingly, the medium risk profile of the securitized debt instruments matches that of the prospective investors of this fund and hence can be considered in the fund universe. 2. Policy relating to originators based on nature of originator, track record, NPAs, losses in earlier securitized debt, etc. and 3. Risk mitigation strategies for investments with each kind of originator. For a complete understanding of the policy relating to selection of originators, we have first analyzed below risks attached to a securitization transaction. In terms of specific risks attached to securitization, each asset class would have different underlying risks, however, residential mortgages are supposed to be having lower default rates as an asset class. On the other hand, repossession and subsequent recovery of commercial vehicles and other auto assets is fairly easier and better compared to mortgages. Some of the asset classes such as personal loans, credit card receivables etc., being unsecured credits in nature, may witness higher default rates. As regards corporate loans/receivables, depending upon the nature of the underlying security for the loan or the nature of the receivable the risks would correspondingly fluctuate. However, the credit enhancement stipulated by rating agencies for such asset class pools is typically much higher, which helps in making their overall risks comparable to other AAA/AA rated asset classes. The Scheme may invest in securitized debt assets. These assets would be in the nature of Asset Backed securities (ABS) and Mortgage Backed securities (MBS) with underlying pool of assets and receivables like housing loans, auto loans and single corporate loan originators. The Scheme intends to invest in securitized instruments rated AAA/AA by a SEBI recognized credit rating agency. Before entering into any securitization transaction, the risk is assessed based on the information generated from the following sources: 1. Rating provided by the rating agency

2. Assessment by the AMC Assessment by a Rating Agency In its endeavor to assess the fundamental uncertainties in any securitization transaction, a credit rating agency normally takes into consideration following factors: 1. Credit Risk Credit risk forms a vital element in the analysis of securitization transaction. Adequate credit enhancements to cover defaults, even under stress scenarios, mitigate this risk. Evaluating following risks does this: Asset risk Originator risk Portfolio risk Pool risks The quality of the pool is a crucial element in assessing credit risk. In the Indian context, generally, pools are ‘cherry-picked’ using positive selection criteria. To protect the investor from adverse selection of pool contracts, the rating agencies normally take into consideration pool characteristics such as pool seasoning (seasoning represents the number of

installments paid by borrower till date: higher seasoning represents better quality), over dues at the time of selection and Loan to Value (LTV). To assess its risk profile vis-à-vis the overall portfolio, the pool is analyzed with regard to geographical location, borrower profile, LTV, and tenure. 2. Counterparty Risk There are several counter parties in a securitization transaction, and their performance is crucial. Unlike in the case of credit risks, where the risks emanate from a diversified pool of retail assets, counterparty risks result in either performance or non-performance. The rating agencies generally mitigate such risks through the usage of stringent counterparty selection and replacement criteria to reduce the risk of failure. The risks assessed under this category include: Servicer risk Commingling risk Miscellaneous other counterparty risks 3. Legal Risks The rating agency normally conducts a detailed study of the legal documents to ensure that the investors' interest is not compromised and relevant protection and safeguards are built into the transaction. 4. Market Risks Market risks represent risks not directly related to the transaction, but other market related factors, stated below, which could have an impact on transaction performance, or the value of the investments to the investors. Macro-economic risks Prepayment risks

Interest rate risks Other Risks associated with investment in securitized debt and mitigation measures: Limited Recourse and Credit Risk Certificates issued on investment in securitized debt represent a beneficial interest in the underlying receivables and there is no obligation on the issuer, seller or the originator in that regard. Defaults on the underlying loan can adversely affect the payouts to the investors (i.e. the Schemes) and thereby, adversely affect the NAV of the Scheme. While it is possible to repossess and sell the underlying asset, various factors can delay or prevent repossession and the price obtained on sale of such assets may be low. Housing Loans, Commercial Vehicle loans, Motorcar loans, Two wheeler loans and personal loans will stake up in that order in terms of risk profile. Risk Mitigation: In addition to careful scrutiny of credit profile of borrower/pool additional security in the form of adequate cash collaterals and other securities may be obtained to ensure that they all qualify for similar rating. Bankruptcy Risk If the originator of securitized debt instruments in which the Scheme invests is subject to bankruptcy proceedings and the court in such proceedings concludes that the sale of the assets from originator to the trust was not a 'true sale', and then the Scheme could experience losses or delays in the payments due. Risk Mitigation: Normally, specific care is taken in structuring the securitization transaction so as to minimize the risk of the sale to the trust not being construed as a 'true sale'. It is also in the interest of the originator to demonstrate the transaction as a true sell to get the necessary revenue recognition and tax benefits. Limited Liquidity and Price risk Presently, secondary market for securitized papers is not very liquid. There is no assurance that a deep secondary market will develop for such securities. This could limit the ability of the investor to resell them. Even if a secondary market develops and sales were to take place, these secondary transactions may be at a discount to the initial issue price due to changes in the interest rate structure. Risk Mitigation: Securitized debt instruments are relatively illiquid in the secondary market and hence they are generally held to maturity. The liquidity risk and HTM nature is taken into consideration at the time of analyzing the appropriateness of the securitization.

Risks due to possible prepayments: Weighted Tenor / Yield Asset securitization is a process whereby commercial or consumer credits are packaged and sold in the form of financial instruments Full prepayment of underlying loan contract may arise under any of the following circumstances; Obligor pays the Receivable due from him at any time prior to the scheduled maturity date of that Receivable; or Receivable is required to be repurchased by the Seller consequent to its inability to rectify a material misrepresentation with respect to that Receivable; or The Servicer recognizing a contract as a defaulted contract and hence repossessing the underlying Asset and selling the same. In the event of prepayments, investors may be exposed to changes in tenor and yield. Risk Mitigation: A certain amount of prepayments is assumed in the calculations at the time of purchase based on historical trends and estimates. Further a stress case estimate is calculated and additional margins are built in. Bankruptcy of the Investor’s Agent If Investor’s agent becomes subject to bankruptcy proceedings and the court in the bankruptcy proceedings concludes that the recourse of Investor’s Agent to the assets/receivables is not in its capacity as agent/Trustee but in its personal capacity, then an Investor could experience losses or delays in the payments due under the swap agreement. Risk Mitigation: All possible care is normally taken in structuring the transaction and drafting the underlying documents so as to provide that the assets/receivables if and when held by Investor’s Agent is held as agent and in Trust for the Investors and shall not form part of the personal assets of Investor’s Agent. Assessment by the AMC Mapping of structures based on underlying assets and perceived risk profile the scheme will invest in securitized debt originated by Banks, NBFCs and other issuers of investment grade credit quality and established track record. The AMC will evaluate following factors, while investing in securitized debt: Originator Acceptance evaluation parameters (for pool loan and single loan securitization transactions) Track Record We ensure that there is adequate past track record of the Originator before selection of the pool including a detailed look at the number of issuances in past, track record of issuances, experience of issuance team, etc. Willingness to Pay As the securitized structure has underlying collateral structure, depending on the asset class, historical NPA trend and other pool / loan characteristics, a credit enhancement in the form of cash collateral, such as fixed deposit, bank, guarantee etc. is obtained, as a risk mitigation measure. Ability to Pay This assessment is based on a strategic framework for credit analysis, which entails a detailed financial risk assessment. A traditional SWOT analysis is used for identifying company specific financial risks. One of the most important factors for assessment is the quality of management based on its past track record and feedback from market participants. In order to assess financial risk a broad assessment of the issuer’s financial statements is undertaken to review its ability to undergo stress on cash flows and asset quality. Business risk assessment, wherein following factors are considered: - Outlook for the economy (domestic and global) - Outlook for the industry - Company specific factors In addition a detailed review and assessment of rating rationale is done including interactions with the company as well as agency Critical Evaluation Parameters (for pool loan and single loan securitization transactions)

Typically we would avoid investing in securitization transaction (without specific risk mitigant strategies / additional cash/security collaterals/ guarantees) if we have concerns on the following issues regarding the originator / underlying issuer: 1. High default track record/ frequent alteration of redemption conditions / covenants 2. High leverage ratios – both on a standalone basis as well on a consolidated level/ group level 3. Higher proportion of re-schedulement of underlying assets of the pool or loan, as the case may be 4. Higher proportion of overdue assets of the pool or the underlying loan, as the case may be 5. Poor reputation in market

6. Insufficient track record of servicing of the pool or the loan, as the case may be.

Advantages of Investments in Single Loan Securitized Debt: 1. Wider Coverage: A Single Loan Securitized Debt market offers a more diverse range of issues / exposures as the Banks / NBFCs lend to larger base of borrowers. 2. Credit Assessment: Better credit assessment of the underlying exposure as the Banks / NBFCs ideally co-invest in the same structure or take some other exposure on the same borrower in some other form. 3. Better Structuring: Single Loan Securitized Debt investments facilitate better structuring than investments in plain vanilla debt instruments as it is governed by Securitization guidelines issued by RBI. 4. Better Legal documentation: Single Loan Securitized Debt structures involve better legal documentation than Non Convertible Debenture (NCD) investments. 5. End use of funds: Securitized debt has better standards of disclosures as well as limitation on end use of funds as compared to NCD investments wherein the end use is general corporate purpose. 6. Yield enhancer: Single Loan Securitized Debt investments give higher returns as compared to NCD investments in same corporate exposure. 7. Regulator supervision: Macro level supervision from RBI in Securitization Investments as compared to NCD investments. 8. Tighter covenants: Single Loan Securitized Debt structures involve tighter financial covenants than NCD investments. Disadvantages of Investments in Single Loan Securitized Debt 1 Liquidity risk: Investments in Single Loan Securitized Debts have relatively less liquidity as compared to investments in NCDs. 2 Co-mingling Risk: Servicers in a securitization transaction normally deposit all payments received from the obligors into a collection account. However, there could be a time gap between collection by a servicer and depositing the same into the collection account. In this interim period, collections from the loan agreements by the servicer may not be segregated from other funds of the servicer. If the servicer fails to remit such funds due to investors, investors in the Scheme may be exposed to a potential loss.

Table below lists the major risks and advantages of investing in Single Loan securitizations

Risks PTC NCD Risk Mitigants

Liquidity Risk Less Relatively High Liquidity Risk is mitigated by investing in structures which are in line with product maturity, also by taking cash collateral, bank guarantees etc

Advantages PTC NCD

Wider Coverage/Issuers High Relatively Less

Credit Assessment High Relatively less

Structure Higher Issuances Relatively less

Legal Documentation More regulated Relatively less regulated

End use of funds Targeted end use General Purpose use

Yield Enhancer High Less

Covenants Tighter Covenants Less

Secondary Market Issuances

Higher issuances Lower issuances

Table below illustrates the framework that will be applied while evaluating investment decision relating to a pool securitization transaction:

Characteristics/Type of Pool Mortgage Loan

Commercial Vehicle and Construction Equipment

CAR 2 wheelers Micro Finance Pools

Personal Loans

Approximate Average Maturity (in months)

36-120 months

12-60 months

12-60 months

15-48 months

15-80 weeks

5 months – 3 years

Collateral margin (including cash, guarantees, excess interest spread, subordinate tranche)

3-10% 4-12% 4-13% 4-15% 5-15% 5-15%

Average Loan to Value Ratio 75%-95% 80%-98% 75%-95% 70%-95% Unsecured Unsecured

Average seasoning of the Pool 3-5 months 3-6 months 3-6 months

3-5 months

2-7 weeks 1-5 months

Maximum Single exposure range 4-5% 3-4% NA (retail Pool)

NA (Retail Pool)

NA (Very Small Retail Loan)

NA (Retail Pool)

Average single exposure range % 0.5%-3% 0,5%-3%

Default rate distribution: We generally ensure that all the contracts in the pools are current to ensure zero default rate distribution. Indicates how much % of the pool and overall portfolio of the originator is current, how much is in 0-30 DPD (days past due), 30-60 DPD, 60-90 DPD and so on. The rationale here being, as against 0-30 DPD, the 60-90 DPD is certainly a higher risk category. Geographical Distribution: Regional/state/ branch distribution is preferred to avoid concentration of assets in a particular region/state/branch. Risk Tranching: Typically, we would avoid investing in mezzanine debt or equity of Securitized debt in the form of sub ordinate tranche, without specific risk mitigation strategies / additional cash / security collaterals/ guarantees, etc. Also refer Paragraphs 2 and 3 above for risk assessment process. 4. Minimum retention period of the debt by originator prior to securitization: Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true sale" criteria including credit enhancement and liquidity enhancements. In addition, RBI has proposed minimum holding period of between nine and twelve months for assets before they can be securitized. The minimum holding period depends on the tenor of the securitization transaction. The Fund will invest in securitized debt that is Compliant with the laws and regulations. 5. Minimum retention percentage by originator of debts to be securitized Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true sale" criteria including credit enhancement and liquidity enhancements, including maximum exposure by the originator in the PTCs. In addition, RBI has proposed minimum retention requirement of between five and ten percent of the book value of the loans by the originator. The minimum retention requirement depends on the tenor and structure of the securitization transaction. The Fund will invest in securitized debt that is compliant with the laws and regulations. Refer the Table in paragraph 2 and 3 above, which illustrates the average seasoning of the debt by the originator prior to securitization. Further, also refer the same Table, which illustrates additional collaterals taken against each type of asset class, which is preferred over the minimum retention percentage by the originator of the loan. 6. The mechanism to tackle conflict of interest when the mutual fund invests in securitized debt of an originator and the originator in turn makes investments in that particular scheme of the fund. Investments made by the scheme in any asset are done based on the requirements of the scheme and is in accordance with the investment policy. All Investments are made entirely at an arm’s length basis with no consideration of any existing / consequent investments by any party related to the transaction (originator, issuer, borrower etc.). Investments made in Securitized debt are made as per the Investment pattern of the Scheme and are done after detailed analysis of the underlying asset. There might be instances of Originator investing in the same scheme but both the transactions are at arm’s length and avoid any conflict of interest. In addition to internal controls in the fixed income investment process, there is regular monitoring by the compliance team, risk management group, and internal review teams. Normally the issuer who is securitizing instrument is in need of money and is unlikely to have long-term surplus to invest in mutual fund scheme. 7. In general, the resources and mechanism of individual risk assessment with the AMC for monitoring investment in securitized debt. The risk assessment process for securitized debt, as detailed in the preceding paragraphs, is same as any other credit. Credit analyst does the investments in securitized debt after appropriate research. The ratings are monitored for any movement. Monthly Pool Performance MIS is received from the trustee and is analyzed for any variation. The entire securitized portfolio is published in the fact sheet and disclosed in the web site for public consumption with details of underlying exposure and originator. Note: The information contained herein is based on current market conditions and may change from time to time based on changes in such conditions, regulatory changes and other relevant factors. Accordingly, our investment strategy, risk mitigation measures and other information contained herein may change in response to the same. Credit Rating of the Transaction / Certificate The credit rating is not a recommendation to purchase, hold or sell the Certificate in as much as the ratings do not comment on the market price of the Certificate or its suitability to a particular investor. There is no assurance by the rating agency

either that the rating will remain at the same level for any given period of time or that the rating will not be lowered or withdrawn entirely by the rating agency. Risks associated with Short Selling and Securities Lending & borrowing. The scheme will not indulge in any Stock Lending & borrowing and Short Selling activities. Risks associated with investment in ADR/GDR and foreign securities The scheme will not have any exposure in ADR/ GDR and foreign securities.

OTHERS

• No person is authorized to give any information or to make any representation inconsistent with this scheme information document in connection with the New Fund offer and/or issue of units of LIC NOMURA MF FIXED MATURITY PLAN SERIES -91

• This Scheme Information Document includes all the points mentioned in the Standard Observations issued by SEBI.

• This scheme information document contains no deviations from, and neither have any subjective interpretations been applied to, the provisions of a ny regulations. All contents in this scheme information document have been checked and are factually correct.

• Any information or representation not contained herein this document, must not be relied upon as having been authorized by the Mutual fund or t he Investment manager.

• All information in the offer and abridged scheme information document has been updated considering the standard observations, 30 days before the launch of the scheme.

• The Standard Observations/Clarifications, as far as possible a nd applicable shall also be followed in case of existing schemes till the scheme information documents are revised and updated .

In case the Government of India makes any amendment to the Direct Tax Laws with retrospective effect then AMC will pay the tax and the investor/scheme will be spared from the tax burden.

B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME

The Scheme(s) and Individual Plan(s) under the Scheme(s) shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme(s)/Plan(s). These conditions will be complied with immediately after the close of the NFO itself i.e. at the time of allotment. In case of non-fulfillment with the condition of minimum 20 investors, the Scheme(s)/Plan(s) shall be wound up in accordance with Regulation 39 (2) of SEBI (MF) Regulations automatically without any reference from SEBI. In case on non-fulfillment with the condition of 25% holding by a single investor on the date of allotment, the application to the extent of exposure in excess of the stipulated 25% limit would be liable to be rejected and the allotment would be effective only to the extent of 25% of the corpus collected. Consequently, such exposure over 25% limits will lead to refund within 5 business days of the date of closure of the New Fund Offer.

C. SPECIAL CONSIDERATIONS, IF ANY

Investors are requested to read the terms of SID carefully before investing in the scheme and to retain the SID for future reference.

D. DEFINITIONS

AMC LIC NOMURA Mutual Fund Asset Management Limited, the Asset Management Company incorporated under the Companies Act, 1956, and authorized by SEBI to act as the Investment Manager to the Schemes of LIC NOMURA Mutual Fund.

IMA

The Agreement entered into between LIC NOMURA Mutual Fund Trustee Company Pvt. Ltd. and LIC NOMURA Mutual Fund Asset Management Company Ltd. by which LIC NOMURA MF AMC has been appointed the Investment Manager for managing the funds raised by LIC NOMURA MF under the various Schemes.

LIC Nomura MF AMC LIC NOMURA Mutual Fund Asset Management Company Ltd.

LIC Life Insurance Corporation of India.

LIC NOMURA MF LIC NOMURA Mutual Fund.

NAV Net Asset Value of the Units in each option of the Scheme is calculated in the manner provided in this Scheme Information Document or as may be prescribed by Regulations from time to time. The NAV will be computed up to four decimal places.

Applicable NAV

Applicable NAV is the Net Asset Value per Unit at the close of the Business Day on which the application for purchase or redemption/switch is received at the designated investor service center and is considered accepted on that day. An application is considered accepted on that day; subject to it being complete in all respects and received prior to the cut-off time on that Business Day. Units will be allotted based on availability of clear funds on the date of allotment.

Business Day

A business day means any day other than Saturday, Sunday or a day on which The Stock Exchange, Mumbai or National Stock Exchange Limited or Reserve Bank of India or Banks in Mumbai are closed or a day on which there is no RBI clearing/settlement of securities or a day on which the sale and/or redemption and /or switches of Units is suspended by the Trustees /AMC or a day on which normal business could not be transacted due to storms, floods, bandhs, strikes or any other events as the AMC may specify from time to time.

SEBI Securities and Exchange Board of India.

SEBI (MF) Regulations, 1996

Securities and Exchange Board of India (Mutual Funds) Regulations as amended from time to time and such other regulations as may be in force from time to time to regulate the activities of Mutual Funds.

FII Foreign Institutional Investors, registered with SEBI under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995.

Switch Sale of unit in one Scheme/Plan against purchase of unit in another scheme/Plan.

Entry Load Load on purchase / switch-in of units. Exit Load Load on redemption / switch-out of units. NSE National Stock Exchange of India Ltd.

Collecting Bank Branches of Banks for the time being authorized to receive application(s) for units as mentioned in the scheme information document.

Designated Service Centers

Any location as may be defined by the Asset Management Company from time to time where investors can submit the request for purchase / redemption / switching of units etc.

ASBA Application Supported by Blocked Amount: An application containing an authorization to block the application money in the bank account for subscribing to the NFO.

ARN Holder"/"AMFI registered Distributors

Intermediary registered with Association of Mutual Funds in India (AMFI) to carry out the business of selling and distribution of mutual fund units and having AMFI Registration Number (ARN) allotted by AMFI covering circular CIR/IMD/DF/21/2012 dated 13th September 2012.

Beneficial owner Beneficial owner as defined in the Depositories Act 1996 (22 of 1996) means a person whose name is recorded as such with a depository.

Consolidated Account Statement

Consolidated Account Statement is a statement containing details relating to all the transactions across all mutual funds viz. purchase, redemption, switch, dividend payout, dividend reinvestment, systematic investment plan, systematic withdrawal plan, systematic transfer plan and bonus transactions, etc.

Depository Depository as defined in the Depositories Act, 1996 (22 of 1996) and includes National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL).

Depository Participant 'Depository Participant' means a person registered as such under subsection (1A) of section 12 of the Securities and Exchange Board of India Act, 1992.

Depository Records Depository Records as defined in the Depositories Act, 1996 (22 of 1996) includes the records maintained in the form of books or stored in a computer or in such other form as may be determined by the said Act from time to time.

Dividend Income distributed by the Mutual Fund on the Units. Exchange” / Stock National Stock Exchange of India Ltd. (NSE) / Bombay Stock Exchange Ltd. (BSE) and

Exchange such other stock exchange(s) recognised by SEBI where the Units of the respective Plan(s) offered under the Scheme will be listed.

Investor Service Centers / Official Points of Acceptance

Designated LIC NOMURA MF Branches or Offices of LIC NOMURA MF Asset Management Company Limited or such other centers / offices as may be designated by the AMC from time to time where application for subscription / redemption / switch will be accepted on ongoing basis.

Maturity Date / Final Redemption Date

Maturity Date / Final Redemption Date is the date (or the immediately following Business Day, if that date is not a Business Day) on which the Units under the respective Plans will be compulsorily and without any further act by the Unit holder(s) redeemed at the Applicable NAV.

NRI A Non-Resident Indian or a person of Indian origin residing outside India

Person of Indian Origin

A citizen of any country other than Bangladesh or Pakistan, if (a) he at any time held an Indian passport; or (b) he or either of his parents or any of his grandparents was a citizen of India by virtue of Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or person referred to in sub-clause (a) or (b).

Rating

Rating means an opinion regarding securities, expressed in the form of standard symbols or in any other standardised manner, assigned by a credit rating agency and used by the issuer of such securities, to comply with any requirement of the SEBI (Credit Rating Agencies) Regulations, 1999.

RBI Reserve Bank of India, established under the Reserve Bank of India Act, 1934 Registrar and Transfer Agent or RTA

Karvy Computershare Pvt. Ltd., Hyderabad is currently apponted as registrar to the Scheme, or any other registrar appointed by the AMC from time to time.

Regulatory Agency GOI, SEBI, RBI or any other authority or agency entitled to issue or give any directions, instructions or guidelines to the Mutual Fund.

Repurchase option Sale of Government Securities with simultaneous agreement to repurchase them at a later date.

Reverse Repurchase option

Purchase of Government Securities with a simultaneous agreement to sell them at a later date.

Redemption Redemption of Units of the Scheme as permitted.

Sale / Redemption Sale or allotment of Units to the Unit holder upon subscription by the investor / applicant under the Scheme.

Scheme Information Document or SID

This document issued by LIC NOMURA Mutual Fund, offering Units of the scheme for subscription.

Statement of Additional Information or SAI

The document issued by LIC NOMURA Mutual Fund containing details of LIC NOMURA Mutual Fund, its constitution, and certain tax, legal and general information. SAI is legally a part of the Scheme Information Document.

Switch

Redemption of a Unit in any scheme (including the plans / options therein) of the Mutual Fund against purchase of a Unit in another scheme (including the plans / options herein) of the Mutual Fund, subject to completion of lock-inperiod, if any, of the Units of the scheme(s) from where the Units are being switched.

Unit The interest of the Unit holder which consists of each Unit representing one undivided share in the assets of the Scheme.

Unit Holder or Investor A person holding Unit in the Scheme of LIC Mutual Fund offered under this Scheme Information Document.

E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY

LIC NOMURA MF FIXED MATURITY PLAN – SERIES 91

It is confirmed that:

I. The draft scheme information document forwarded to SEBI is in accordance with the SEBI (MF) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.

II. All legal requirements connected with the launching of the scheme as also the guidelines, instructions, etc. issued by the government and any other competent authority in this behalf, have been duly complied with.

III. The disclosures made in the scheme information document are true, fair and adequate to enable the investors to make a well-informed decision regarding investment in the proposed scheme.

IV. All intermediaries named in the scheme information document are registered with SEBI and till date such registration is valid.

sd/-

Date: 03/11/2014 Name: Mr Mayank Arora

Place: Mumbai Compliance Officer

II. INFORMATION ABOUT THE SCHEME

A. TYPE OF THE SCHEME

A close ended Income Scheme

B. INVESTMENT OBJECTIVE OF THE SCHEME

The investment objective of the Scheme is to minimize interest rate risk by investing in a portfolio of fixed income securities, which mature on or before the date of the maturity of the scheme. However there is no assurance that the investment objective of the Scheme will be met.

C. ASSET ALLOCATION PATTERN

Under normal circumstances, it is anticipated that the asset allocation pattern for LIC Nomura MF FMP- Series 91 would be as under:

14:Type of Instruments Minimum Allocation (% of Corpus)

Maximum Allocation (% of Corpus

Risk Profile

Debt* instruments 75 100 Low To Medium

Money Market instruments 0 25 Low To Medium

*Debt includes securitised debt upto 50%

Scheme will not invest in:

a) Foreign Securities

b) Stock Lending & borrowing and Short Selling

c) Repo / Reverse Repo of Corporate Bonds

d) Derivatives

e) Foreign Securitized Debt

f) Equity Linked Debentures

g) Securities of issuers involved exclusively in gold based lending

h) Credit Default Swaps

The Scheme will not invest in the following sectors ; -

a) Gems & Jewellery

b) Real Estate The scheme may invest in available sectors except the above mentioned sectors, subject to sector level restrictions as per SEBI (MF) Regulations. And total exposure in a particular sector (excluding investments in Bank CDs, CBLO, G-Secs, TBills and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 30% of the net assets of the scheme; Provided that an additional exposure to financial services sector (over and above the limit of 30%) not exceeding 10% of the net assets of the scheme shall be allowed by way of increase in exposure to Housing Finance Companies (HFCs) only; Provided further that the additional exposure to such securities issued by HFCs are rated AA and above and these HFCs are registered with National Housing Bank (NHB) and the total investment/ exposure in HFCs shall not exceed 30% of the net assets of the scheme.

The above Pattern will be indicative and Fund Manager may change the same from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors.

The Trustee Company may from time to time, for a short period on defensive consideration, modify/alter the investment pattern / asset allocation, the intent being to protect the Net Asset Value of the scheme and interest of the unitholders, without seeking the consent of unitholders.

Change in Investment Pattern : Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Investment Manager; the intention being at all times to seek to protect the interests of the Unitholders. Such changes in the investment pattern will be for short term and for defensive considerations only.

Further, in the event of any deviations below the minimum limits or beyond the maximum limits as specified in the above table, the Fund Manager shall rebalance the portfolio within 5 days if the scheme maturity is more than 30 days upto 3 months, within 15 days if the scheme maturity is more than 3 months upto 6 months and 30 days if the scheme maturity is more than 6 months. For maturity period upto 30 days rebalancing shall not be done. Investment in Debt: a) The AMC may retain the option to alter the asset allocation for a short-term period on defensive considerations.

b) All debt instruments other than Government securities in which investments are made by the scheme should have been rated above investment grade by CRISIL/ICRA/CARE/FITCH or any other credit rating agencies, which may be recognised from time to time.

c) The investments shall be made only in transferable securities and the funds of the scheme shall not be used in short selling or carry forward transactions.

d) The Maturity profile of debt instrument will be selected in line with the outlook for the market subject to the condition that the securities mature on or before the maturity of the scheme. The investment strategy would emphasize investments in securities that give consistent returns at low levels of risks.

DEBT AND MONEY MARKETS IN INDIA: The instruments available in Indian Debt Market are classified into two categories, namely Government and Non - Government debt. The following instruments are available in these categories: A] Government Debt • Central Government Debt • Zero Coupon Bonds • Treasury Bills • State Government Debt • Dated Government Securities • State Government Loans • Coupon Bearing Bonds • Floating Rate Bonds B] Non-Government Debt • Instruments issued by Government Agencies and other Statutory Bodies • Instruments issued by Banks and Development Financial institutions • Government Guaranteed Bonds • PSU Bonds • Instruments issued by Public Sector Undertakings • Instruments issued by Corporate Bodies • Fixed Coupon Bonds • Floating Rate Bonds • Zero Coupon Bonds Certificates of Deposit • Promissory Notes • Commercial Paper • Non-Convertible Debentures • Fixed Coupon Debentures • Floating Rate Debentures • Zero Coupon Debentures Certificate of Deposit (CD): Certificate of Deposit (CD) is a negotiable money market instrument issued by scheduled commercial banks (SCBs) and select All India Financial Institutions (FIs), within their umbrella limit. The scheme introduced by RBI allows these institutions to mobilize bulk deposits from the market, which they can have at competitive rates of interest. The maturity period of CDs issued by the SCBs is between 7 days to 1 year. CDs also are issued at a discount to face value and can be traded in secondary market. Duplicate can be issued after giving a public notice & obtaining indemnity. Collateralized Borrowing and Lending Obligations (CBLO): Collateralized Borrowing and Lending Obligations (CBLO) is a money market instrument that enables entities to borrow

and lend against sovereign collateral security. The maturity ranges from 1 day to 90 days and can also be made available up to 1 year. Central Government securities including Treasury Bills are eligible securities that can be used as collateral for borrowing through CBLO. These instruments benefit entities who have either been phased out from inter-bank call money market or have been given restricted participation in terms of ceiling on call borrowing and lending transactions and who do not have access to the call money market. Commercial Paper (CP): Commercial Paper (CP) is an unsecured negotiable money market instrument issued in the form of a promissory note, generally issued by the corporates, primary dealers and All India Financial Institutions as an alternative source of short-term borrowings. CP is traded in secondary market and can be freely bought and sold before maturity. CP can be issued for maturities between a minimum of 15 days and a maximum up to 1 year from the date of issue. Non Convertible Debentures and Bonds Non convertible debentures as well as bonds are securities issued by companies / institutions promoted / owned by the Central or State Governments and statutory bodies which may or may not carry a guarantee. Nonconvertible debentures are unsecured bonds that cannot be converted to company equity or stock. Nonconvertible debentures usually have higher interest rates than convertible debentures. These instruments may be secured or unsecured against the assets of the Company and generally issued to meet the short term and long term fund requirements. Debt Instruments

Activity in the Primary and Secondary Market is dominated by Central Govt. Securities including Treasury Bills. These instruments comprise close to 60% of the all outstanding debt and more than 75% of the daily trading volume on the wholesale Debt Market Segment of the National Stock Exchange of India Limited.

In the money market, activity levels of the Government and Non-Government Debt vary from time to time. Instruments that comprise a major portion of money market activity include Overnight Call, CBLO, Treasury Bills, Government Securities with a residual maturity of less than 1 year, Commercial Papers, Certificate of Deposit.

Apart from these, there are some other options available for short tenure investments that include MIBOR linked debentures with periodic exit options and other such instruments. Though, not strictly classified as Money Market Instruments, PSC / DFI / Corporate Paper with a residual maturity of less than 1 year are actively traded and offer a viable investment option.

Currently the indicative yields for some of the money market instruments are as follows:

Note: The above rates are indicative and are subject to fluctuations in general interest rates and market conditions.

D. WHERE WILL THE SCHEME INVEST?

INSTRUMENTS INDICATIVE YIELDS as on November 14, 2014

Call Rate 6.42% CBLO (Weigh Avg) 8.02% Certificate of Deposit - 3 Months 8.36% 6 Months 8.52% 1 Year 8.65% Commercial Paper - 3 Months 8.56% 6 Months 8.86% 1 Year 9.00% Treasury Bills - 91 Days 8.31% 364 Days 8.33% Government Securities - 1 Year 8.15% 2 Year 8.26% AAA Corporate Bonds - 1 Year 8.62%

The corpus of the Scheme will be invested in debt and money market instruments. Subject to the Regulations, the corpus of the Scheme can be invested in any (but not exclusively) of the following securities.

1. Money market instruments (Money at call, MIBOR linked debentures, bonds or any other instruments permitted by RBI/SEBI having a residual maturity of less than or equal to maturity period of the scheme, to meet the liquidity requirements.

2. Non-money market instruments (including bonds & debentures issued by Corporates or PSUs, Gilts, fixed rate debentures/ bonds with swap or any other instrument permitted by SEBI).

3. Securities created and issued by the Central and State Governments and Reverse Repos in such Government Securities as may be permitted by RBI/SEBI (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).

4. Securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).

5. Debt obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central/State Government guarantee.

6. Corporate debt and securities (of both public and private sector undertakings) including Bonds, Debentures, Notes, Strips, etc.

7. Certificate of Deposits (CDs).

8. Commercial Paper (CPs).

9. Securitised Debt obligations.

10. Fixed Deposits (AMC will not charge management fee for investments in Fixed Deposits).

11. The non-convertible part of convertible securities.

12. As regards SEBI Circular Ref.SEBI/IMD/CIR No. 7/73202/06 dt.2/8/06 i.e. investment in ADRs / GDRs / Foreign Securities and Overseas ETFs by mutual funds, the Fund is not going to invest in any foreign securities.

13. Pass through, Pay through or other Participation Certificates representing interest in a pool of assets including receivables.

14. The scheme will not invest in Repo / Reverse Repo of Corporate Bonds. However, the scheme may enter into reverse repurchases obligations in Treasury Bills and Govt. Securities only held by it as per the guidelines and regulations applicable to such transactions, if needed.

15. Any other like instruments as may be permitted by SEBI from time to time.

The securities mentioned above and such other securities the scheme is permitted to invest could be listed, unlisted, privately placed, secured, unsecured, rated and of residual maturity matching with the plan term. The securities may be acquired through Initial Public Offer, secondary market operations, private placement, rights offers or negotiated deals.

E. INVESTMENT STRATEGIES

The proportion of investment in various securities will be decided after considering the prevailing political conditions, the economic environment (including interest rates and inflation), the performance of the corporate sector and general liquidity and other considerations in the economy and markets so as to have a liquid portfolio providing optimum returns.

OTHER DISCLOSURES FOR CLOSE ENDED DEBT ORIENTED SCHEMES:

LIC NOMURA Mutual Fund shall follow the SEBI circular Cir/IMD/DF/2011 dated 01/08/2011 as per the details mentioned below:

1) Credit Evaluation Policy:

From credit evaluation perspective, each company is internally appraised by focusing on three parameters viz. (a) Business Fundamental (b) Financial Analysis & (c) Management Track record of the Investee company. A Detailed analysis is carried out to understand the business model of the investee company and its financial position before deciding to invest.

Our Internal Team carries out the Research and the same is approved as per our authorization matrix.

2) The scheme will not invest or indulge in the following:

a) Foreign Securities,

b) Stock Lending & borrowing and Short Selling

c) Repo / Reverse Repo of Corporate Bonds

d) Derivatives

e) Foreign Securitized Debt

f) Equity Linked Debentures

g) Securities of issuers involved exclusively in gold based lending.

h) Credit Default Swaps.

The Scheme will not invest in the following sectors ; -

a) Gems & Jewellery

b) Real Estate

The scheme may invest in available sectors except the above mentioned sectors, subject to sector level restrictions as per SEBI (MF) Regulations.

3) Floors and Ceilings within a range of 5% of the intended allocation (in %) against each sub asset class / credit rating (The scheme shall invest in various securities /instruments as mentioned below with the ratings mentioned against the type of instrument. As per SEBI circular Cir/IMD/DF/12/2011 dated August 01, 2011, the scheme is allowed to invest within a range of 5% of the intended allocation (floor and cap) against each sub asset class/credit rating).

The asset allocation would be as follows:

Instruments Rating

AAA AA A Not Applicable

NCDs 80-85% 15-20% - -

Any other securities such as Government Securities / Treasury Bills / CBLO / Reverse Repos Repos (in G-Sec / T-Bill).

-

- - 0-5%

Note: a) Securities with rating AA shall include AA+ and AA-, respectively. Securities with rating A shall include A+ and A-. Similarly, securities with A1 rating shall include A1+. b) In case of non-availability of and taking into account the risk-reward analysis of CPs, NCDs (including securitized debt) the scheme may invest in Bank CDs of highest rating and CBLO. Such deviation may continue till maturity of the scheme, if suitable NCDs/CPs of desired credit quality are not available. The scheme will not invest in unrated securities. The asset allocation indicated against NCDs would include Bonds and Zero Coupon bonds. c) There can be positive variation in the range w.r.t. rating i.e. scheme may invest in papers of higher rating in the same instrument than indicated to improve the credit quality. d) At the time of building up the portfolio post NFO and towards the maturity of the scheme, there may a higher allocation to cash and cash equivalents e) All investments shall be made based on rating prevalent at the time of investment. If any paper is having dual rating (rated differently by more than one rating agency) then for the purpose of meeting intended range the most conservative publicly available rating would be considered e.g. if the paper is rated AAA by one rating agency and AA by the other, then, the paper will be treated as AA rated paper for complying with intended portfolio range.

f) Change in Asset Allocation: Further, in the event of any deviations below the minimum limits or beyond the maximum limits as specified in the above table, the Fund Manager shall rebalance the portfolio within 5 days if the scheme maturity is more than 30 days upto 3 months, within 15 days if the scheme maturity is more than 3 months upto 6 months and 30 days if the scheme maturity is more than 6 months. For maturity period upto 30 days rebalancing shall not be done.

Further, the asset allocation may vary during the tenure of the plan. Some of these instances are: a) Coupon inflow; b) the instrument is called back by the issuer; c) in anticipation of any adverse credit event. In case of such deviations plans may invest in bank CDs of highest rating / CBLOs / G-SEC / T-Bills. Such deviation may continue till suitable instruments of desired credit quality are not available. Accordingly, investors should note that there will not be any variation between the intended portfolio allocation and the final portfolio allocation apart from the exceptions as mentioned under clauses, (b), (c), (d) and (f) above.

(4) Reporting: After the closure of NFO, the AMC will report in the next meeting of AMC/ Trustees, the publicized percentage allocation and the final portfolio. Risk Control

The AMC aims to identify securities, which offer superior levels of yield at lower levels of risks. With the aim of controlling risks, rigorous in depth credit evaluation of the securities proposed to be invested in will be carried out by the investment team of the AMC.

Scenarios/Conditions for investment in securitised debt

The scheme will invest in securitised debt instruments if it is offering better returns compared to fixed income instruments for similar risk profile. The scheme may also invest in securitised debt if for same returns, securitised debt offer better risk profile. The Scheme will invest in securitised debt considering the maturity, asset quality and available yield. However, the scheme shall not invest in foreign securitised debt. The fund manager shall always keep in mind the investment in securitised debt will not increase the risk profile of the scheme.

F. FUNDAMENTAL ATTRIBUTES

Following are the Fundamental Attributes of the scheme, in terms of Regulation 18 (15A) of the SEBI (MF) Regulations:

(i) Type of Scheme:

A close ended income scheme.

(ii) Investment Objective:

The investment objective of the Scheme is to minimize interest rate risk by investing in a portfolio of fixed income securities, which mature on or before the date of the maturity of the scheme.

(iii) Investment Pattern:

Please refer to ‘Section II – C. Asset Allocation and Pattern’ of this SID for details.

(iv) Terms of Issue :

LIQUIDITY

No redemption/repurchase of units shall be allowed prior to the maturity of the scheme. The Scheme will be listed on NSE and Investors wishing to exit may do so, through NSE or any other stock exchange where the scheme will be listed.

LISTING

Trustees have ensured that before the launch of the Scheme, in – principle approval for listing has been obtained. The Scheme will be listed on National Stock Exchange of India Ltd. (NSE). Further, the AMC may at its discretion list the units on any Stock Exchange.

In accordance with Regulation 18 (15A) of the SEBI (MF) Regulations, the Trustees shall ensure that no change in fundamental attributes of the Scheme(s) and the Plan(s) / Option(s) there under or the trust or fee and expenses payable or any change which would modify the Scheme(s) and the Plan(s) / Option(s) there under and affect the interest of unitholders is carried out unless:

A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and

The Unitholders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any load.

Maximum recurring expenses on the first Rs.100 crores @ 2.25% of daily net assets (details are there in the further section).

NFO expenses shall be borne by AMC.

G. SCHEME BENCHMARK-9 CRISIL Short Term Bond Fund Index

H. FUND MANAGER

NAME

Age

Qualifications

Brief Experience Other schemes managed

Mr. Kunal Jain

30 Years

M.B.A. (Finance & Marketing), International School of Business & Media.

Deputy Manager- Research, Kotak Mahindra AMC Ltd, Jan 2008-Aug 2010. Manager - Portfolio Management Services, Kotak Mahindra AMC Ltd, Aug 2010-Aug 2012. Senior Manager – Fixed Income, Kotak Mahindra AMC Ltd, Aug 2012- July 2014. Presently Debt Fund Manger in LIC NOMURA Mutual Fund AMC

LIC Nomura MF Interval Fund Quarterly Plan-Series 2 LIC Nomura MF Interval Fund Quarterly Plan-Series 1 LIC Nomura MF Interval Fund Monthly Plan-Series 1 LIC Nomura MF Interval Fund Annual Plan-Series 1 LIC Nomura MF GSEC Fund LIC Nomura MF Bond Fund LIC Nomura MF Capital Protection

Oriented Fund- Series 5 LIC Nomura MF Fixed Maturity

Plan- Series 89 & 90

I. INVESTMENT RESTRICTIONS

Pursuant to the Securities and Exchange Board of India (Mutual Funds) Regulations 1996 [Regulations 44(1)], the following investment and other limitations are presently applicable to the scheme: -

1) The scheme shall not invest more than 15% of the schemes NAV in debt instruments issued by a single issuer which are rated not below investment grade by an authorized credit rating agency. Such an investment limit may be raised to 20% of the scheme’s NAV with the prior approval of the Trustee and the Board of Asset Management Company provided that, such limit shall not be applicable for investments in government securities.

Provided further that investment within such limit can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with the Board.

2) Transfers of investments from one scheme to another in the mutual fund shall be allowed only if: -

i) Such transfers are done at the prevailing market price for quoted instruments on spot basis.

ii) The securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made.

3) The investment manager may, from time to time invest its own funds in the scheme at its discretion. However, the investment manager shall not be entitled to charge any fees on its investments in the scheme.

4) A scheme may invest in another scheme under the same AMC or any other Mutual Fund without charging any fees, provided the aggregate inter-scheme investment made by all schemes under the same management company or in schemes under the management of any other AMC shall not exceed 5% of the net assets of the mutual fund.

5) The Mutual Fund may borrow to meet liquidity needs, for the purpose of repurchase, redemption of units or payment of interest or dividend to the unit holders and such borrowings shall not exceed 20% of the net asset of the scheme and duration of the borrowing shall not exceed 6 months.

6) The sale and purchase of securities shall take place on the basis of deliveries and in all cases of purchases the Mutual fund shall take delivery of relative securities and in all cases of sale deliver the securities.

7) The Mutual fund shall get the securities purchased or transferred in the name of the mutual fund on account of the scheme, wherever investments are intended to be of a long-term nature.

8) Pending deployment of funds of a scheme in securities in terms of investment objectives of the scheme a mutual fund may invest them in short-term deposits of scheduled commercial banks, subject to such Guidedlines as may be specified by the Board. The requirements of SEBI Circulars SEBI/IMD/CIR No.1/91171/07 dated 16 April 2007 and SEBI/IMD/CIR No.8/107311/07 dated 26 October 2007 will be adhered to.

9) The Trustee of the Mutual Fund may alter these limitations from time to time to the extent the SEBI regulations change so as to permit the scheme to make its investments in the full spectrum of permitted investments for the Mutual Fund in order to achieve its investment objectives. All investments of the Scheme will be made in accordance with the SEBI (Mutual Funds) Regulations, 1996, including Schedule VII thereof.

9A) The Scheme shall not make any investment in any fund of funds scheme

10) The scheme shall not make any investments in –

a) any unlisted security of an associate or group company of the sponsor; or

b) any security issued by way of private placement by an associate or group company of the sponsor; or

c) the listed securities of group companies of the sponsor which is in excess of 25 per cent of the net assets.

11) Debentures, irrespective of residual maturity period (above or below 1 year) shall attract the investment restrictions as applicable for debt instruments as specified under clause 1 and 1A of the Seventh Schedule to the Regulations. 12) The Scheme shall not invest more than thirty percent of its net assets in money market instruments of an issuer. Provided that such limit shall not be applicable for investments in Government securities, treasury bills and collateralized borrowing and lending obligations.

13) Further, apart from the investment restrictions prescribed under SEBI (MF) Regulations, the Fund may follow any internal norms vis-a-vis limiting exposure to a particular instrument, scrip or sector etc. All investment restrictions shall be applicable at the time of making investment.

Investment by LIC NOMURA MF Fixed Maturity Plan – SERIES -91 in Other Schemes Managed By the AMC

LIC NOMURA MF FIXED MATURITY PLAN – SERIES – 91 may invest its funds with other schemes managed by LIC NOMURA MF AMC which are short term in nature and liquidity is available subject to scheme objectives and regulations 44(1) of the SEBI Regulations 1996 and the AMC shall not charge any investment management fee for such investments.

Investment by the asset management company

LIC NOMURA MF AMC may invest in LIC NOMURA MF FIXED MATURITY PLAN – SERIES -91 at its discretion from time to time. The AMC shall, however, not charge any fees on its investment in the scheme in accordance with sub-clause 3 of regulation 24 of SEBI (MF) Regulations 1996.

Portfolio Turnover

As the scheme is a close ended debt scheme the portfolio turnover is expected to be very low.

INTER SCHEME TRANSFERS

The norms followed for Inter Scheme Transfer are as follows:

All Inter Scheme Transfers of Securities are affected

i) at the prevailing market price for quoted securities on spot basis or at the “fair value” for non-traded securities as per valuation norms approved by the Trustee in accordance with the provisions of SEBI (MF) Regulations, 1996 ; and

ii) Provided the securities so transferred are in conformity with the investment objective and requirement of the transferee scheme.

The valuation norms referred to in (i) above are the same as are followed for valuation of securities for calculating NAVs in general.

BORROWING BY THE FUND

The Fund may borrow to meet temporary liquidity needs for the purpose of repurchase/redemption, redemption or payment of interest or dividend

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